Citi shifts $80B of assets for BlackRock to manage in wealth pact

[BlackRock Headquarters]
hapabapa

BlackRock (NYSE:BLK [https://seekingalpha.com/symbol/BLK]) will manage $80B of assets f [https://seekingalpha.com/pr/20221410-citi-to-deliver-new-customized-portfolio-offering-powered-by-blackrock-to-citi-wealth-clients]or Citi (NYSE:C [https://seekingalpha.com/symbol/C]) wealth clients under an agreement between the two giant financial firms, and the pact will also give Citi access to BlackRock's Aladdin technology, the companies said Thursday.

BlackRock (NYSE:BLK [https://seekingalpha.com/symbol/BLK]) stock gained 1.0%, and Citigroup (NYSE:C [https://seekingalpha.com/symbol/C]) stock edged up 0.2% in premarket trading.

The world's largest asset manager will create a new portfolio offering for Citi clients — Citi Portfolio Solutions power by BlackRock, combining "strategic investment advisory and planning capabilities of the leading global bank with the investment management and technology strengths of one of the world’s preeminent asset managers."

Under the agreement, BlackRock will manage core, opportunistic and thematic investment strategies across equities, fixed Income, multi-asset class strategies and, over time, private markets. In addition, the firm’s Aladdin Wealth technology platform will be deployed to Citi’s Private Bankers and investment professionals.

The agreement shifts the $80B of assets to BlackRock (BLK [https://seekingalpha.com/symbol/BLK]) from accounts currently managed by Citi Investment Management.

Andy Sieg, head of Wealth at Citi (C [https://seekingalpha.com/symbol/C]), said, the partnership "brings together the sophisticated relationship-driven and market-based advice of our bankers, backed by the insights of our own chief investment office, with the renowned investment expertise and innovative technology capabilities of BlackRock (BLK [https://seekingalpha.com/symbol/BLK])."

As part of the agreement, certain members of Citi Investment Management will join BlackRock (BLK [https://seekingalpha.com/symbol/BLK]), where they will continue to serve as portfolio managers on existing strategies for Citi clients. Over time, Citi and BlackRock will also develop new products and solutions for the benefit of Citi clients by leveraging the scale, infrastructure, and capabilities of BlackRock.

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